THE RULING FROM BORGARTING COURT OF APPEAL WHERE PETROLIA SUBSIDIARY WON THE LEGAL DISPUTE WITH PETROMENA BANKRUPTCY ESTATE IS NOW FINAL

Oil Tools Supplier AS (formerly Petrolia Services AS), a subsidiary of Petrolia SE, has entered into an agreement with the PetroMENA ASA bankruptcy estate whereby both parties agree not to file an appeal to the Supreme Court over the decision from Borgarting Court of Appeal regarding the claim from the PetroMENA ASA bankruptcy estate. Borgarting Court of Appeal has in majority ruled in favor of Oil Tools Supplier AS and has reduced the claim to USD 1.5 million, in line with the position of Oil Tools Supplier AS.

With reference to the stock notice dated 18 December 2014, the Estate of PetroMENA ASA and Oil Tools Supplier AS, has today entered into an agreement not to file an Appeal to the Supreme Court over the decision from Borgarting Court of Appeal.

Consequently, Borgarting Court of Appeal reduces the claim from the Estate of PetroMENA ASA from USD 34.7 million to USD 1.5 million, plus accrued interest, with no legal costs awarded. The total amount to be paid to the Estate of PetroMENA ASA is now USD 2.1 million.  The reduced claim is in line with the position of Oil Tools Supplier AS.

Petrolia SE has previously made provisions of USD 13 million for the claim and will book the residual as extraordinary income in the fourth quarter 2014.

Limassol/Bergen, 21 January 2015


For further information, please contact:

Kjetil Forland                                                                                    

Managing Director, Norwegian branch                                  

Phone: +47 93 24 00 27                                                                 

Mail: kjetil.forland@petrolia.no

This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act.


About Petrolia SE

Petrolia SE has three business segments: E&P, Drilling & Well Technology and OilService and is listed on Oslo Stock Exchange under the ticker code PDR. The core activity includes Petrolia Norway AS, an independent oil & gas company approved as a licensee on the Norwegian Continental Shelf, and a group of leading rental equipment companies for the global oil industry. Petrolia SE employs a staff of around 330 highly competent employees worldwide.

About Us

Oil & Gas division: Petrolia Norway AS maximizes field potential through innovative exploration and increased oil recovery technology from mature areas on the Norwegian Continental Shelf, leveraging on the extensive industry experience of the Petrolia Norway team. Petrolia Norway AS is qualified as a licensee for the Norwegian Continental Shelf. The company currently holds 50 per cent of the PL674 license, 30 per cent of PL 506S, PL 506BS, PL 506CS and PL 506DS and 10 per cent of PL 628. The company is wholly owned by Petrolia SE and has offices in Bergen, Stavanger and Oslo. Through Petroresources Ltd (47.24 per cent owned) the division has economic interests in licenses in Africa and the Middle East. OilService division: The company´s involvement in oilfield services began through the acquisition of Independent Oil Tools AS in 2007. Total investment in equipment has subsequently exceeded USD 200 million. The investments were largely financed by Petrolia and in addition financial leases of more than USD 40 million were obtained. The division has developed into a leading international equipment rental group with a global presence. This division owns drill pipes, test strings & tubing, handling & auxiliary tools and other equipment. In addition, the division provides associated services like tubular running services through Premium Casing Services Pty Ltd in Australia and New Zealand. The OilService division benefits from an excellent track record of availability, technical compliance, experience and performance. It has a well-established, large, international client base, including a portfolio of contracts in place with numerous major oil service companies, oil companies and drilling contractors. Drilling and Well Technology division: In 2012, a subsidiary of Petrolia SE acquired two land rigs which are presently located in Romania. The drilling rig has completed 18 wells since it commenced a one and a half year contract in Romania. The contract is with a large oil company and is to be completed by the end of this year. The rig has proven to be efficient in line with expectations for the drilling activities, as well as fast and efficient mobilisation and demobilisation between wells. The rig is currently being marketed to a certain number of potential customers within Europe and other commercially attractive areas. The work-over land rig is being marketed and will be mobilised once a LOI is signed. Both rigs are managed by TM Drill, a Romanian land drilling contractor, in which Petrolia has a 19.66% interest. The division has started to build in-house competence within land drilling activities and has employed a number of skilled employees to be able to expand within this segment.

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